factual

Which document outlines the territorial development and sales quotas for a Brueggers Bagels franchise?

Brueggers_Bagels Franchise · 2025 FDD

Answer from 2025 FDD Document

etition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.

Development Agreement. If you sign a Development Agreement, it will define a specific geographic area within which you will have the right to develop Bakeries (the "Development Area"). We will negotiate the boundaries of the Development Area with you. We focus on various factors, including natural and political boundaries, population density, advertising markets, the proximity of other Bakeries and/or development areas, and other relevant geographic and demographic factors in negotiating the Development Area. The Development Agreement will include, as an exhibit, a description of the negotiated Development Area. You may not modify the Development Area without our prior written approval, which we may withhold in our sole discretion. You and we will also agree on the number of Bakeries that you will develop in your Development Area and the pace at which you must build them.

You do not receive an exclusive territory under the Development Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, while the Development Agreement is in effect, we will not establish within the Development Area, or franchise others to establish within the Development Area, the same type of Bakeries that you have the right to develop within the

Development Area. The restriction on Bakeries of the same type does not apply to Bruegger's outlets at Co-Branded Locations, Licensed Bakeries at non-traditional facilities, sales of Bruegger's products through other channels of distribution, or sales of Bruegger's-branded products or similar products and services through other brands that we or our affiliates control or may acquire in the Development Area, as described below in this Item.

Your right to develop Bakeries in the Development Area is contingent on satisfaction of the development schedule attached to your Development Agreement (the "Development Schedule"). The Development Schedule sets out the number of Bakeries that you must develop and the dates by which they must be open. If you fail to meet the Development Schedule, we can terminate your right to develop new Bakeries in the Development Area.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 29–31)

What This Means (2025 FDD)

According to Brueggers Bagels' 2025 Franchise Disclosure Document, the Development Agreement outlines the geographic area within which the franchisee has the right to develop Bakeries, referred to as the Development Area. Brueggers Bagels negotiates the boundaries of the Development Area with the franchisee, considering factors such as natural and political boundaries, population density, and proximity to other Bakeries. The Development Agreement includes a description of the negotiated Development Area as an exhibit.

The Development Agreement also specifies the number of Brueggers Bagels locations the franchisee must develop within their Development Area and the pace at which they must be built. This development schedule is attached to the Development Agreement and sets out the number of Bakeries that must be developed and the dates by which they must be open. Failure to meet this Development Schedule can result in the termination of the franchisee's right to develop new Bakeries in the Development Area.

It is important to note that franchisees do not receive an exclusive territory under the Development Agreement and may face competition from other franchisees, company-owned outlets, or other channels of distribution. However, while the Development Agreement is in effect, Brueggers Bagels will not establish or franchise others to establish the same type of Bakeries within the Development Area. This restriction does not apply to Brueggers Bagels outlets at Co-Branded Locations, Licensed Bakeries at non-traditional facilities, or sales of Brueggers Bagels products through other channels of distribution.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.